tag:theconversation.com,2011:/au/topics/union-corruption-12731/articlesUnion corruption – The Conversation2015-06-18T20:25:52Ztag:theconversation.com,2011:article/434682015-06-18T20:25:52Z2015-06-18T20:25:52ZGrattan on Friday: Bill Shorten's purgatory puts Labor into limbo<p>Bill Shorten’s July 8 appearance before the royal commission into union corruption is crucial for his credibility and has major implications for his leadership.</p>
<p>Shorten needs to lay absolutely to rest any suggestion that in his previous life as Australian Workers Union (AWU) chief he put the union’s interests ahead of those of the workers.</p>
<p>But the very fact Shorten is before the inquiry will be a negative in some voters’ minds, making it a no-win situation for him. The question is whether the damage will be light or disastrous.</p>
<p>Shorten was forced to <a href="https://theconversation.com/shorten-seeks-to-fast-track-union-royal-commission-appearance-43467">ask for his testimony</a> to be brought forward in the wake of media stories about union deals.</p>
<p>In particular, Fairfax Media <a href="http://www.theage.com.au/victoria/bill-shortens-union-took-hundreds-of-thousands-from-building-company-20150617-ghq5si.html">reported</a> the AWU was paid almost A$300,000 after he struck an agreement with Thiess John Holland for the $2.5 billion EastLink road project in Melbourne that cut conditions and gave the company big savings.</p>
<p>But it should be noted that Tony Shepherd, then-chairman of Connect East that subcontracted Thiess John Holland and latterly head of the Abbott government’s commission of audit, has <a href="http://www.afr.com/news/politics/tony-shepherd-backs-bill-shorten-over-eastlink-worker-sellout-claims-20150618-ghqu18">strongly defended Shorten</a>, saying the deal was good for employers and workers at a time when “construction was appalling”.</p>
<p>This parliamentary session’s penultimate week has been all downside for Shorten. Only months ago Tony Abbott was in deep trouble. Now Shorten finds himself tangled in a net of his own history as well as current issues.</p>
<p>Tuesday <a href="http://www.theaustralian.com.au/national-affairs/newspoll/newspoll-bill-shorten-approval-rating-at-record-low-28-per-cent/story-fnc6vkbc-1227399413962">brought a Newspoll</a> showing the opposition leading but Shorten’s ratings poor, plus a damaging episode of The Killing Season reprising Labor divisions. On Wednesday-Thursday came the Thiess and other union tales. All fodder for the government. By Thursday, the Sydney Morning Herald was <a href="http://www.smh.com.au/comment/smh-editorial/bill-shorten-should-consider-his-future-amid-awu-revelations-20150617-ghq7r5.html">claiming</a> in an editorial: “The position of Bill Shorten as federal Labor leader is becoming untenable”.</p>
<p>Shorten is on the defensive to a much greater degree than at any time since becoming leader.</p>
<p>The bad week came despite Labor having ammunition against the government – the schmozzle over the as yet unseen legislation to strip citizenship from dual nationals associated with terrorism, and Abbott’s refusal to say whether Australia paid $US30,000 to the crew of a people smuggling boat.</p>
<p>But with his confidence high, Abbott has become increasingly brazen. He’s ready and able to run over an opposition that fears and falters, and even to display a touch of Ruddism towards his ministers. The citizenship bill, when finalised, won’t go back to cabinet, despite (or perhaps because of) its sensitivity.</p>
<p>Abbott accused Labor of wanting to “roll out the red carpet” for returning terrorists, as the opposition got caught between Shorten’s earlier “in principle” support for the move on dual nationals and Labor’s increasing concern about the revocation power being vested in ministerial hands.</p>
<p>After the citizenship bill is released next week, we’ll get an idea of whether Abbott has succeeded in forcing Labor to break its bipartisanship on national security.</p>
<p>We may not know definitely, because the bill will go to the parliamentary committee that has been able to devise compromises on earlier legislation. Will Abbott, who has his blood up, want a divided report or the usual consensus that comes from that committee?</p>
<p>The opposition had legitimate questions over the allegation the government paid the six-member crew of a people smuggling boat $US5000 each to take the passengers back to Indonesia. But after its initial attack, Labor appeared spooked when it became clear that under the ALP government payments were made for information about people smuggling and disruption activities.</p>
<p>If Shorten had greater authority and Labor more confidence, the opposition would not have hesitated. Paying for disruption activities and information is different in kind from giving out a big sum to the smugglers after a boat is intercepted. And also the Indonesians, who have been apparently untroubled by “disruption” payments, were loudly demanding answers on the boat incident.</p>
<p>On a completely different front, Shorten copped fire when Labor announced it would oppose the legislation for the government’s tougher assets test on pensions, which will save $2.4 billion over the forward estimates. The opposition then quickly became irrelevant when the <a href="https://theconversation.com/deal-to-pass-tougher-assets-test-includes-more-scrutiny-of-retirement-income-43356">Greens did a deal</a> with the persuasive Scott Morrison.</p>
<p>In terms of policy, Labor’s position is flawed. Yes, there are losers up the income scale in the Morrison model, but there are winners down the scale. And when savings need to be made, it is reasonable that the well-off don’t get the pension, or get less of it.</p>
<p>Whether Labor’s stand on pensions is a political miscalculation is less clear. The government can portray it as the ALP standing up for the non-needy. But Labor is making a direct pitch at those in the pre-pension age bracket. Shorten said some 700,000 in their 50s and early 60s would be hit. Once the change is legislated, however, Shorten can’t argue he’d reverse it – he’d have a fight over fiscal irresponsibility on his hands.</p>
<p>Between now and July 8, Shorten will be living in political purgatory, which will impose a discount on the effectiveness of everything he does.</p>
<p>Worse for him, the inquisition is expected to stretch out. The commission said that because he had asked to appear early it will not be possible for everything to be done in one sitting. Anyone affected by his evidence will be able to seek to cross-examine him later.</p>
<p>And then there will be the wait for the findings.</p>
<p>For Labor, there is a nightmare of uncertainty ahead.</p>
<p><strong><a href="http://michellegrattan.podbean.com/e/sarah-hanson-young-1434357637/">Listen to the latest Politics with Michelle Grattan podcast, with guest, Greens Senator Sarah Hanson-Young, here or on iTunes.</a></strong></p>
<iframe id="audio_iframe" src="https://www.podbean.com/media/player/yuxk7-56b070" width="100%" height="100" frameborder="0" scrolling="no"></iframe><img src="https://counter.theconversation.com/content/43468/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Bill Shorten's July 8 appearance before the royal commission into union corruption is crucial for his credibility and has major implications for his leadership.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/431152015-06-11T20:00:46Z2015-06-11T20:00:46ZGrattan on Friday: Tough terrain ahead for Bill Shorten<figure><img src="https://images.theconversation.com/files/84656/original/image-20150611-15197-1lqma2.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=496&amp;fit=clip" /><figcaption><span class="caption">Bill Shorten has questions to answer over his time as the head of the AWU, according to Tony Abbott.</span> <span class="attribution"><span class="source">AAP/Lukas Coch</span></span></figcaption></figure><p>The government has always seen Bill Shorten’s union past as a prime target, and now it is starting to take serious aim.</p>
<p>A main motive in Tony Abbott’s setting up the <a href="http://www.tradeunionroyalcommission.gov.au/Pages/default.aspx">royal commission into trade union corruption</a> was political – to find ammunition to deploy against Labor and its leader.</p>
<p>This week the commission claimed a political scalp, when Victorian Labor MP Cesar Melhem <a href="http://www.theage.com.au/victoria/cesar-melhem-steps-down-as-party-whip-20150609-ghjitl.html">stood down</a> as government whip in the state upper house. This followed an allegation that as Australian Workers Union Victorian secretary, Melham had done down workers in a wage deal in exchange for money being paid to the union.</p>
<p>Shorten is close to Melhem and preceded him as Victorian AWU secretary.</p>
<p>The government has seized on information from the inquiry that in 2005 – Shorten’s time – the union invoiced Winslow Constructors for more than A$38,000 to cover dues for 105 AWU members.</p>
<p>Declaring Shorten had questions to answer, Abbott said there had been “pretty startling revelations” at the commission about the AWU “which Mr Shorten used to head up”.</p>
<p>“What has been happening in that union is that companies have been dudding their workers as part of a sweetheart deal … The union has been padding its membership, it has been boosting its power at Labor Party conferences at the expense of workers.</p>
<p>"I think this is pretty scandalous. We have got one Labor member of parliament in Victoria who has had to stand down from his position and he was Bill Shorten’s successor.”</p>
<p>Shorten, whose Thursday news conference was dominated by the issue, said he had “zero tolerance” for any form of corruption, and that an EBA concluded under him with Winslow had brought pay rises (4% rise in each of two years, the latter in two lots of 2%).</p>
<p>Asked whether there was a conflict of interest in having employers pay union dues, Shorten said that “if employers and employees work out matters that is up to them”.</p>
<p>“What I do know is that in Tony Abbott’s royal commission into trade unions I always expected there’d be some political smear and unfairness.”</p>
<p>Only time will tell whether the commission will throw up major problems for Shorten personally – and whether he will end up appearing before it.</p>
<p>But given his union roots, the commission’s general revelations of bad behaviour in sections of the movement – already seen in its first report – will add to what appear to be Shorten’s increasing problems.</p>
<p>These problems mean Shorten could go into election year poorly placed, even though the government will likely continue to struggle with its own ineptness – on show this week with Joe Hockey’s comments on housing affordability – and with a still slow economy.</p>
<p>The Coalition has taken a beating over the cabinet leak from its citizenship debate, but probably more important is this week’s Essential poll finding that 81% approve of its decision to remove citizenship of dual nationals engaged in terrorism or supporting terror groups.</p>
<p>Abbott is banging the security drum ferociously, playing the fear card. In a remarkable sentence, he told the regional summit Australia is hosting on violent extremism that “Daesh is coming, if it can, for every person and for every government with a simple message: submit or die”.</p>
<p>Abbott is likely to step up efforts to attempt to wedge Shorten on national security, while Shorten will battle to stay closely bipartisan, a task which can only get more difficult.</p>
<p>In the polls Labor remains ahead on a two-party basis but its earlier advantage has weakened. Shorten personally has been going backwards vis-a-vis Abbott. Essential <a href="essentialvision.com.au/category/essentialreport">showed</a> Abbott widening the gap as better prime minister from 35-32% in May to 38-33%, his best result since October. As part of the modern continuous election campaign, Shorten is in the media daily. But even many Labor people worry he is lacking connection and cut-through.</p>
<p>The months ahead are full of challenges for Shorten. He has to navigate the July ALP national conference, where the most testing issue may be not whether Labor should “bind” MPs on same-sex marriage, but whether the party gives room for a Labor government to turn back boats. If it doesn’t, that could be disastrous for Shorten.</p>
<p>Shorten also needs to show more progress on his commitment to make this the ALP’s “year of ideas”. But Labor has already found, for example on superannuation, that while it is under pressure to produce initiatives, doing so can make it the issue.</p>
<p>The opposition must develop both hip-pocket policies that attract people (and this when there’s no money around, so requiring substantial and potentially controversial savings) and some loftier ones to inspire. Addressing a dinner on Thursday, Shorten talked up the republican cause. But worthy as this might be, it doesn’t seem something to grab the general public right now.</p>
<p>Immediately ahead, another aspect of his past looms awkwardly for Shorten, in episodes two and three of the ABC’s The Killing Season.</p>
<p>This week’s first instalment was notable for the on-camera detestation between Julia Gillard and Kevin Rudd. The next episode is said to be explosive.</p>
<p>Shorten, who was a central player in the two coups, did not agree to be interviewed for the programs. But they will have fallout for him, reminding people of Labor’s divisions and including his crucial role. And they’ll air in the final two parliamentary weeks before the winter break.</p>
<p>As he faces likely tough months, Shorten enjoys one substantial advantage. Thanks to the change of rules driven by Rudd he has, barring something extraordinary, safe tenure until the election. Labor coups are very yesterday.</p><img src="https://counter.theconversation.com/content/43115/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The government has always seen Bill Shorten's union past as a prime target, and now it is starting to take serious aim.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.